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The role of government in the provision of broadband services is a subject of much debate. An increasing number of local governments are proposing either to build and operate broadband networks for residential and business use, or to develop broadband infrastructure for wholesale lease to commercial service providers.
Based on research reports, broadband business plans, and public debates over government provision of broadband services, we have developed a list of questions public officials should ask to make sure they fully understand the issue and any specific proposals. Answers to these questions will help make better policy decisions.
General
1. What Problems Will a Government Broadband System Solve?
- Is the need clear and well defined?
- Is the process by which a government broadband system will solve the problem clear and direct?
- How does a government broadband system compare to other means of solving the problem like targeted low interest loads, investment incentives, or special programs in coordination with local entrepreneurs?
2. What Are the Specific Needs a Government Broadband System Would Address?
- Are these needs today not addressable by the existing telecom infrastructure?
- Will a state-sponsored system duplicate existing facilities and capabilities?
- What is the effect on existing or prospective service providers?
- If needs are not currently being met, will they be met by the telecom infrastructure of the near future and, if so, will a government system become redundant or outmoded at a later point in time?
- If economic development or creating jobs is a key motivator, how will a government system expand opportunities beyond what the market provides? Is there a cost/benefit analysis comparing this strategy to other job creation strategies?
3. What Is it About Broadband That Makes it a Good Public Investment?
- Are government officials prepared to enter and compete in one of the most dynamic of industries?
- Isn’t it usually the case that the discipline of running a profitable enterprise yields better financial and technological decisions?
4. Have Current Market Conditions Been Taken into Account?
- How will the government broadband service compete with companies like Verizon, Sprint and Cingular rolling out new broadband wireless systems today?
- Would it be better to first remove all the obstacles to private investment in telecom networks before the state steps into this dynamic and competitive marketplace?
- What local, state and federal regulations and taxes would apply to the new government broadband system?
- If the new system is exempt from such regulations and taxes, should policymakers consider a regulatory parity measure to level the playing field for all competitors?
5. What Is the "Business Plan"?
- What are the total direct costs of the system — both capital expenses as well as operating expenses?
- Who are the customers?
- Who will have access?
- What will the prices be and how will they be determined or adjusted?
- Where do the revenues go?
- Who are the managers?
- Who are the "shareholders"?
- What are the limits on future activity of the party building and operating this network?
- What are the controls on selecting vendors?
- What is the nature and amount of spectrum required for the project? What is the availability? What is the cost?
- If the government does acquire this prime spectrum, what is the crowding out effect on private competitors or would-be competitors?
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Financing/Costs/Budgeting
6. How will capital costs be funded at the beginning of construction? Will current government services be cut to cover the costs or will the city incur a greater deficit?
7. If costs run over budget, will taxpayers be liable for paying excess costs? Is there any limit to taxpayer liability for these costs?
8. If operation of the system is outsourced to a non-profit entity, what percentage of that entity’s revenues will be spent on operations?
9. If the city network users will be provided security software, how will that be financed?
10. How will capital costs be funded at the beginning of construction before customer revenues begin flowing?
11. What is the projected “up-take” in consumer adoption of the system? In other words, how many customers do you project will purchase or otherwise use the services? How many are private and how many government users.
12. If user revenues are insufficient to cover operational and capital costs, will taxpayers be liable for paying excess costs? Is there any limit to taxpayer liability for these costs?
13. What is the funding source for the operational and capital costs if revenues are insufficient?
14. If operation of system is outsourced to a non-profit entity, what percentage of that entity’s revenues will be spent on operations?
15. Will all government Wi-Fi antennas be located on government property and structures? If on private property, will property owners be compensate or subject to eminent domain?
16. If the city is intending to utilize the wi-fi network for public safety purposes, what reliability factor is specified in the contract? If the wi-fi system fails, will the city maintain a redundant system for private or city or public safety use? If so, what is the ongoing cost of this redundant system?
17. How will the costs associated with network maintenance, network upgrades, or replacing the network when technology changes (eg., Wi-Max) be covered?
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Security
18. What steps is are being taken to ensure that a government Wi-Fi network does not interfere with existing private, personal, and small business Wi-Fi systems?
19. How will government monitor for illegal uses of the system and put in place safeguards to prevent hackers from compromising the network?
20. Is this to be an open network? closed network? or support both modes?
21. What security mechanisms are to be implemented? Will the intrusion detection, DoS mitigation, etc. be included?
22. Will government provide security software (anti-virus, personal firewall, etc.) or application software for users?
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Content/Free Speech
23. How will government ensure parental controls on its public network?
24. Does the plan comply with the Children’s Internet Protection Act?
25. How will the city prevent illegal downloading and piracy of copyrighted material?
26. Has any planning taken place or funding set aside for complying with subpoenas from the RIAA about illegal music file sharing?
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Social
27. Realistically, how many people do you think will benefit from this system? To what extent is it redundant?
28. How will the government provide Wi-Fi capable devices to those who cannot afford them? If so, will it include security software (anti-virus, personal firewall, etc.) and/or application software for these devices? How will that be funded and upgrades be managed?
29. How will the government ensure that devices provided to economically underprivileged people are not stolen or sold to others?
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Small Business Impact
30. Many small businesses currently provide free Internet access as an inducement for visiting their premises. How does the government plan to respond when these businesses lose an important competitive tool?
31. Will the government reimburse businesses who must install special equipment to maintain the integrity of their existing systems in the case of interference caused by the city-owned system?
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Tech Support
32. Will customer support be carried out by government employees or outsourced? If outsourced, will support personnel be unionized and will offshore outsourcing be utilized? Does the city require that any level of benefits or healthcare be provided for support personnel?
33. How will the government deal with system breakdowns? Is the government capable of responding to maintenance and customer service requests as fast as the private sector? Is there any precedent for this?
34. How will the government or its contractor ensure the reliability of the system in the case of a disaster? Will back-up power be available? What specific plans exist to strengthen the system?
35. How will technical support be accessed, via the internet or telephone? What is the capacity for each mode?
36. Is there a cost and contingency plan related to vandalism?
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Technical/Compatibility
37. What steps is government taking to ensure that the wi-fi network does not interfere with existing private, personal, and small business wi-fi systems?
38. What design techniques or deployment rules will the government use to ensure that the system does not suffer from interference from existing systems?
39. How will the government deliver its wi-fi signal with sufficient strength to serve tall buildings and users further than 300 feet from antennas on city rights-of-way? What RF planning tools and techniques are used to plan the system for coverage and capacity?
40. How will a government wi-fi system be interfaced to the wired network? What is the capacity per unit area planned in the backhaul network?
41. What is the capacity of the government wi-fi system -- both system wide and at each antenna? How much will system capacity drop in the event of an overload?
42. Does the government plan to support voice over wi-fi on this network? What are the design constraints to provide acceptable voice quality (delay, jitter, QoS)?
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